PCF Insurance Services raises $500m at $4.7bn valuation

American insurance brokerage firm PCF Insurance Services has secured a $500 million preferred equity investment at a valuation of $4.7 billion.

PCF Insurance Services anticipates to use proceeds from the transaction to establish itself as a premier insurance brokerage firm in the US.

The transaction is co-led by Carlyle’s Global Credit platform and existing minority investor HGGC, a private equity firm.

In addition, Owl Rock, a division of Blue Owl, and Crescent Capital, both with existing minority stakes in the insurance brokerage business, have also participated in preferred equity investment the round.

The Lehi, Utah-headquartered PCF Insurance Services is a full-service consultant and insurance brokerage firm, which offers commercial, employee benefits, life and health, and workers’ compensation solutions.

Peter C Foy — PCF Insurance Services Founder, Chairman, and CEO said: “This transaction marks a significant milestone in our pursuit of building a premier insurance brokerage firm in the U.S.

“We have built our agency-centric business model around long-term, sustainable growth, and I’m proud that PCF is positioned to continue investing in the growth of our agencies, especially during these recent times of economic uncertainty.”

PCF Insurance Services, with over 415,000 clients, completed its management-led buyout in November 2021.

Gary Jacovino — Carlyle Global Credit Managing Director said: “PCF Insurance Services has experienced tremendous growth as a result of its unique client- and employee-centric operating model.

“We are delighted to be partnering with an exceptional management team and group of Agency Partners, and are confident PCF will achieve its long-term strategic growth objectives with the support of Carlyle Global Credit, HGGC and our partner investors.”

J.P. Morgan acted as the placement agent to PCF Insurance Services.

PCF Insurance Services said that it closed over 100 partner transactions and grew its revenue to $700 million by the end of 2022.